The Need for a Balanced Measurement System Using Different Perspectives to Create Meaningful Measures Bill Rabung and Brad Sickles U.S. Department of Labor ETA Performance Accountability Team
Aug 15, 2015
The Need for a Balanced
Measurement System
The Need for a Balanced
Measurement SystemUsing Different Perspectives to Create Meaningful Measures
Bill Rabung and Brad SicklesU.S. Department of Labor
ETA Performance Accountability Team
The Mission of WIA…The Mission of WIA…“…“…increase the employment, increase the employment,
retention, and earnings of retention, and earnings of participants, and, as a result, improve the quality of participants, and, as a result, improve the quality of the workforce, reduce welfare dependency, and the workforce, reduce welfare dependency, and enhance the productivity and competitiveness of enhance the productivity and competitiveness of the Nation" - Sec. 106the Nation" - Sec. 106
National Core and Customer Satisfaction Measures…National Core and Customer Satisfaction Measures… 17 core and customer satisfaction measures
Selection of measures driven by law
The measures focus on program impacts, not on operations or strategies
Apply separately to States and local WIBs
Performance is assessed annually
Performance levels are negotiated
Incentives and sanctions based on performance
The Need for a Balanced Measurement Approach to Manage Performance…The Need for a Balanced Measurement Approach to Manage Performance… The national measures focus on “bottom line” results, not the drivers of performance
The need for timely results
There is a need for measures that focus on program business operations and outputs
Customer impact measures provide a limited picture of organizational health
Customer impact measures alone are insufficient to assess continuous improvement
The Ideal Approach to Measuring Performance…The Ideal Approach to Measuring Performance…Deploys the agency’s strategic
plan
Focuses and aligns agency activities and efforts
Tests cause-and-effect relationships among the program’s activities
Family of measurement types reduces risk of not meeting “bottom line” measures
Links performance measures to decision making
A Different Framework for Measuring and Managing Performance…A Different Framework for Measuring and Managing Performance…
MISSION
CUSTOMER PERSPECTIVE
To achieve our mission, how must we satisfy our customers?
FINANCIAL PERSPECTIVE
If we succeed, how will we look to Congress and the public?
INTERNAL PROCESSES PERSPECTIVE
To satisfy our customers, Congress, the public, and mission, what businesses processes must we excel at?
LEARNING AND GROWTH
To achieve our mission, how must our people learn, communicate, and work together?
Value, BenefitVa
lue,
Ben
efit
Source: Public sector Balanced Scorecard from the Balanced Scorecard Collaborative
Why Use Different Perspectives When Creating and Using Measures?Why Use Different Perspectives When Creating and Using Measures?
Aid to system and operations management
Help in diagnosing and troubleshooting
Prioritizing
An aid to planning
Understand improvement
Tracking performance
External accountability
To be successful, the drivers of performance
must be identified
Perspectives
Objectives Measures
Use a Strategy Map to Develop ObjectivesUse a Strategy Map to Develop Objectives
Identify strategic themes and group them under the appropriate perspective
Create a strategy map to visualize the interaction of individual activities in the larger system
For each identified strategic theme, identify what you are trying to achieve and the obstacles you face
Develop measurable objectives that specify numeric target levels, where appropriate
Limit objectives to major program elements
Perspectives Objectives
Measures
Develop Measures for the Objectives…Develop Measures for the Objectives…
How well did we succeed at providing customer value?
How well do we do the things which support creating customer value?
Each measure should answer one of the following questions:
Perspectives Objectives Measures
Linking Strategy to Measurement…Linking Strategy to Measurement…Customer Perspective Example
Initiative: Create a strategy to increase the percent of successful program completers from the current rate of 75%.
Rationale: Successful completions highly correlated with increased employment and earnings.
Leadership Business Results
Strategic Planning
Customer Focus
HR Focus
Process Management
Information and Analysis
Relationship of Baldrige to the Balanced ScorecardRelationship of Baldrige to the Balanced Scorecard
Malcolm Baldrige Malcolm Baldrige Systems ModelSystems Model
Malcolm Baldrige Malcolm Baldrige Systems ModelSystems Model
Balanced ScorecardBalanced ScorecardBalanced ScorecardBalanced Scorecard
Compare
Learn
Motivate
Reward and celebrate
Promote and explain
Perspectives Objectives Measures
Use of Performance MeasuresUse of Performance Measures
Wherever the product of a public organization has not been monitored in a way that ties performance to reward, the introduction of an effective monitoring system will yield a fifty percent improvement in the product in the short run.
Chase’s Law on Measurement…Chase’s Law on Measurement…
In other words…What gets measured gets
done
Small Group Exercise…Small Group Exercise…Initiative: Your organization created a strategy to increase the employment retention rate of older youth through enhanced training and job development efforts.
Task: Using the approach discussed today, develop short-term customer impact measures that will help your program manage activities to achieve an increased retention rate.
Discuss and identify factors influenced by the program that lead to long-term employment (such as placement into jobs with paid benefits)
Identify at least one objective (such as to increase the percentage of participants placed into jobs offering paid benefits)
Create appropriate measures (such as the percent of participants placed into jobs with paid benefits)
Identify potential data sources